Transshipment is shipment of goods in a single journey, from the point of origin to the final destination using a combination of different mode of transport.
Whether or not transshipment is to be allowed or permitted, it is largely depends on the type and nature of the goods and the trade terms used; E term, F terms, C terms or D terms.
Containerized goods are subject to transshipment because they are normally delivered to the carrier at the seller’s premise or at a named place prior to loading on board the vessel. The goods will be transported by a trailer/lorry by road to the port and later loaded on board the vessel at the port of shipment. In this case, transshipment is to be allowed.
On the other hand, petroleum, grains, liquid cargo and other loose products normally will be delivered directly from the depot at the port of loading and on board the vessel. In this instance, transshipment is prohibited. However, this does not mean the transshipment will not take place. The goods may be unloaded and loaded onto another vessel.
Under this field, either ‘ALLOWED’ or ‘NOT ALLOWED’ is to be indicated.